Cooperation between agroindustry and the UN

This article provides a current assessment of cooperation between business and the UN system in agricultural development.The authors describe the experience, needs, and attitudes of UN agencies and a representative sample of the agroindustry firms in order to increase understanding between the two diverse sets of resources and to better define areas of mutual interest and effective cooperation.They suggest specific new initiatives for business and UN cooperation in agricultural development, to help interested parties to translate mutual economic goals and rhetorical good will into results and concrete cooperative projects.     

The interactive effects of message appeal and individual differences on information processing and persuasion

Individuals differing in the extent to which they enjoy thinking (Cacioppo & Petty, 1982) were exposed either to factual or to evaluative messages pertaining to a fictitious automobile. The results show that message appeal moderates the relationship between need for cognition and judgments about the message, whereas beliefs about the product attributes mediate the relationship between message judgments and product evaluations. Theoretical and practical implications of the moderator-mediator distinction are discussed.     

Linking family-to-business enrichment and support to entrepreneurial success: Do female and male entrepreneurs experience different outcomes?

This study used survey data from 253 entrepreneurs who founded small to medium sized enterprises (SMEs) to examine how experiences in their family domain may benefit their experiences in their business domain. Specifically, it hypothesized that affective family-to-business enrichment, instrumental family-to-business enrichment, and family-to-business support would be positively related to entrepreneurial success and that each relationship would be more positive for female entrepreneurs than male entrepreneurs. Entrepreneurial success was assessed by economic measures (business performance, growth in employment) and measures of satisfaction with the entrepreneurial experience (satisfaction with status, satisfaction with employee relationships). Results offered substantial support for the notion that female entrepreneurs benefit from the linkages of family-to-business enrichment and support to entrepreneurial success, whereas they offered no support for the notion that male entrepreneurs benefit from these linkages. Female entrepreneurs may experience such benefits because of their relative lack of access to other resources such as human, social, and financial capital and because the female gender role encourages them to pursue work–family synergies. In contrast, male entrepreneurs may fail to experience such benefits because of the relative abundance of other resources available to them and because the male gender role discourages them from pursuing work–family synergies.     

Initial credit ratings and earnings management

Credit rating agencies assert that they rely on financial information provided by issuers and that they value rating stability as well as accuracy. In an environment where rating agencies depend on issuer-reported information and are reluctant to adjust ratings promptly, managers of issuing firms can utilize the discretion afforded by GAAP to obtain the most favorable credit ratings. Consistent with our expectations, we find that current accruals are unusually positive and high around initial credit ratings. The increase in abnormally high accruals leading up to the initial credit rating year is followed by a reversal in the subsequent years. Multivariate regression analyses suggest that accounting accruals, abnormal current accruals in particular, are significantly positively related to initial credit ratings after controlling for several issue- and issuer-related characteristics indicative of default risk. Our results are robust to additional tests that account for endogeneity between credit ratings and earnings management, adjust for performance, and account for firms issuing debt and equity simultaneously.     

Powerful CEOs and employee relations: evidence from corporate social responsibility indicators

In this paper, we investigate whether powerful CEOs who dominate the top management team exhibit positive or negative behavior towards their employees. Somewhat surprisingly, we find that CEO power as evidenced by high pay disparity between the CEO and top management, results in positive Employee Relations as measured by the KLD Statistics. We also find that CEO power affects the individual categories of Employee Involvement as well as Employee Health and Safety, indicating that pay disparity positively effects Employee Relations on a number of measures. However, the strong positive relationship is not found when the CEO holds the dual role of Chairman. In addition, neither measure tests positive for union relations, although high profitability, as measured by industry adjusted Return on Assets, appears to permit firms to have positive relations with employees on a number of different measures.     

The Short Sale Stigma

Despite a recent upturn, housing prices remain in flux in most cities nationwide. Lenders are still left dealing with a glut of distressed properties. They can choose to foreclose on the property or allow the owner/mortgagor to attempt to sell the property for less than the outstanding balance of the mortgage in a short sale agreement. The best way to clear the market of distressed properties is an important policy question. This is the first study to examine not only the price and time on market effect of being a short sale but also whether the short sale process itself creates a market stigma.     

The impact of media on the legitimacy of new market categories: The case of broadband internet

Building on research in institutional theory and market categories, we argue that media coverage, through the effects of cognitive and sociopolitical legitimacy, influence the creation of new market categories. Using data on the broadband access industry, we develop and test a media coverage model of market category entries, demonstrating the legitimacy effects of media-based information exchange on the emergence of new market categories. We include two post hoc analyses on mediation effects to test the relationship between population density and media coverage. These results indicate a possible mediation relationship, which we discuss in the implications of our study.     

“When Life Gives You Lemons”: Using Cross-Sectional Surveys to Identify Chronic Poverty in the Absence of Panel Data

At the core of poverty eradication is the need to eliminate that poverty that is persistent over time (chronic poverty). Unfortunately, traditional approaches to identifying chronic poverty require longitudinal data that is rarely available. In its absence, this paper proposes an alternative approach that only requires 1 year of cross-sectional data on monetary and non-monetary poverty. It puts forth two conjectures and contends that the combined profile of a household as both income poor and multidimensionally poor can be used as a proxy of that household being chronically income poor. To explore the viability of this approach, we use a probit model and longitudinal data for three Latin American countries to estimate households’ probabilities of remaining in income poverty based on their past income and multidimensional poverty statuses. We find empirical support for the approach that is significant, consistent across countries, and robust to various controls and periods of analysis.     

How Much Are Borrowers Willing to Pay to Remove Uncertainty Surrounding Mortgage Defaults?

The Journal of Real Estate Finance and Economics - Using a large, non-student sample, we assess and differentiate between borrowers’ Risk Aversion and Ambiguity Aversion levels and their...